Here’s why the labels really want a stake in SoundCloud

SoundCloud is reportedly negotiating with major labels, offering them an equity stake and per-play fees in exchange for being able to use their music. This means the service is about to copy YouTube’s licensing strategy.

Amazon’s sub-Prime music streaming service

From Amazon’s point of view the licensing fees it pays rights owners are merely part of the subscriber acquisition costs for Prime’s two-day shipping plan — a number Amazon needs to keep as low as possible.

Spotify’s message for artists: Do the math

Spotify’s payments to record companies and publishers are pegged to its gross revenue, and increase roughly in proportion to the increase in Spotify’s user base. Performance royalties paid to artists, however, are set on a per-use basis, not a per-user basis, and make a poor proxy for an artist’s value to the service.

The right to disrupt

Unlike in the music industry, digital technology has not yet changed how the money flows in the TV business or (for the most part) who gets it. If and when it does, the TV industry, too, will experience its moment of disruption.

Musical chairs

Different rights owners and middlemen –including artists — have claims on different music revenue streams and can’t simply substitute one for another.

Apple iTunes radio inches closer

Apple is unlikely to launch an advertising-only streaming service a la Pandora given that no one –including Pandora — has been able to make money that way. The more likely scenario is that Apple will launch some sort of hybrid service that involves advertising, paid subscriptions, and the ability to purchase instantly via iTunes the song you just heard on the streaming radio channel.